TradeStation SPAC Presentation Deck slide image

TradeStation SPAC Presentation Deck

Transaction Overview Pro Forma Ownership (mm shares)(1)(2)(3)(4)(8) Quantum SPAC Shareholders (2) Quantum Sponsor Shares (3) Trade Station Shareholder (Monex)(4)(5) PIPE Lead Investor (5)(6) Additional PIPE Investors (5)(6) Total 41 Valuation Summary ($mm)(1)(2)(3)(4)(6) Pre-Money Equity Value Plus: SPAC Shareholders Plus: Sponsor Shares Plus: Monex PIPE Shares Plus: PIPE Lead Investor Shares Plus: Additional PIPE Investor Shares Pro Forma Equity Value Less: New Cash on Balance Sheet Plus: Net Debt 20.9 2.6 134.8 5.5 1.7 165.4 12.6% 1.6% 81.5% 3.3% 1.0% 100.0% $1,297.5 $208.8 $26.2 $50.0 $55.0 $16.5 $1,654.0 ($271.3) $45.3(7) Illustrative Sources and Uses ($mm)(1)(2)(3)(4)(6) Sources: TradeStation Shareholder (Monex) SPAC Cash in Trust Monex PIPE Investment PIPE Lead Investment Additional PIPE Investment Total Sources (2) (3) Does not include 798,894 shares in aggregate that will be subject to certain earn-out conditions or 1,610,554 shares that Sponsor will forfeit at the closing. See Note 2 above for details regarding such earn-out conditions. (4) Includes Monex PIPE investment for 5mm shares. Does not include an additional 34.1mm shares in aggregate that could be issued to Monex if certain earn-out conditions are met. See Note 2 above for details regarding such earn-out conditions. (5) Does not include shares potentially issued to non-Monex PIPE investors pursuant to a make-whole provision, whereby the investor will be issued additional shares such that they are made whole on the dollar amount of their original investment based on the lower of the 10-day VWAP ending on the 60th trading day following the effectiveness of the resale resignation statement and the VWAP for such 60 trading day period, if either is less than $10.00, with a floor of $6.50. Uses: Equity Consideration to Monex Cash Retained on Balance Sheet (²) Estimated Transaction Costs Total Uses (1) Assumes $10 per share, excluding incentive shares (see footnotes 2 and 6), no post-closing change of control and does not include (6) impact of dilution from warrants. In addition, does not include equity plans or compensation. Includes 750,000 shares distributed to non-redeeming public shareholders and assumes no shareholder redemptions. $1,297.5 $201.3 $50.0 $50.0 $15.0 $1,613.8 $1,428.0 Pro Forma Enterprise Value Note 1: This page contains forward-looking statements that reflect TradeStation's assumptions, plans, estimates and beliefs and involve numerous risks and uncertainties. Please see pages 1 - 3 for information regarding non-GAAP financial measures and forward- looking statements and this Appendix for various relevant assumptions. Actual results may differ materially from those contained in any forward-looking statements. Note 2: The earn-out conditions relating to Monex and SPAC Sponsor shares described in the footnotes below allow vesting of 50% of the shares subject to earn out upon a sustained VWAP of $12.50 (see footnote 8 for a definition of sustained) and vesting of the remaining 50% of such shares upon a sustained VWAP of $15.00, in each case over a five-year period. In the event that these earn-out conditions are not met within such five-year period, the right to receive such shares will be forfeited. $1,297.5 $271.3 $45.0 $1,613.8 Third-party PIPE investors committing $5mm or more to receive 10% of their commitment as incremental incentive shares (assumed to be 650,000 incremental incentive shares). (7) As of 6/30/21, total debt of $228mm and cash of $118mm (net debt also excludes $65mm of firm assets available for lending related to the crypto lending business which are funded with Monex loans). (8) Over 80% of shares post closing are subject to lock-ups. Monex Group lock-up: one third of shares until earlier of 12 months and sustained $12.50 last reported sale price; one-third until earlier of 24 months and sustained $15.00 last reported sale price; and one-third until earlier of 36 months and sustained $17.50 last reported sale price. Monex's PIPE shares are not subject to this lock- up. Sponsor lock up: until earlier of 12 months and sustained $12.50 last reported sale price. Lock-ups subject to customary permitted transferee exceptions. With respect to any stock price, sustained means the specified price (or higher) is the price for 20 out of any 30 consecutive trading days. B
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